Investors question paying premium for Philip Morris stock over Google due to stronger financials.

From Nasdaq: 2025-06-23 00:06:00

Investors are questioning why anyone would pay 37 times earnings for Philip Morris stock when Google stock is available at a more attractive valuation of 19 times earnings. Google’s revenue growth at over 13% surpasses Philip Morris’s 7%, with higher profitability and a stronger balance sheet.

However, Google stock is not without risk, experiencing significant volatility in past market shocks. Despite strong AI initiatives driving growth, potential risks include earnings falling short and revenue growth decelerating if geopolitical risks increase and economic conditions worsen.

Internal challenges such as high capital expenditures and regulatory threats pose additional risks. Investors should be prepared for potential drawdowns and consult experienced advisors for long-term holding strategies to navigate market downturns effectively. Despite risks, Google could still be a compelling opportunity for patient, long-term investors.



Read more at Nasdaq: Is Philip Morris Stock A Better Pick Over Alphabet Stock?